Burkan Bank Announces Financial Results for the First Half of 2026
Boubyan Bank K.S.C.P. (“Boubyan,” the “Bank,” or the “Group”) announced its financial results for the six-month period ended June 30, 2026.
Total bank revenues reached 138 million Kuwaiti dinars during the first half of 2026, representing a 9% year-on-year increase. This performance reflects growth across various key revenue sources, driven by higher net interest income and contributions from non-interest income. Net interest income rose to 90 million Kuwaiti dinars, benefiting from sustained growth in the loan portfolio and other income-generating assets, alongside the Group’s ability to maintain a stable net interest margin of 2.2% despite pressures on interest rates. This underscores the robustness of the Bank’s funding strategy and its disciplined balance sheet management.
Non-interest income increased by 9% year-on-year to reach 47 million Kuwaiti dinars, primarily driven by higher fee and commission income, as well as strong performance from the Group’s diversified business segments.
The Group recorded operating profits of 45 million Kuwaiti dinars for the period, compared to 49 million Kuwaiti dinars for the same period last year. This slight decline in operating profits was mainly due to higher operating expenses, resulting from the Group’s continued investment in digital transformation across all its operations, as well as increased operating costs stemming from rising inflation in Turkey.
Profitability was also impacted by higher prudent credit provisions and increased net losses resulting from the application of hyperinflation accounting in Turkey. Consequently, Boubyan Bank reported net profits of 11 million Kuwaiti dinars, compared to 21 million Kuwaiti dinars in the first half of 2025.
Commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of Boubyan Bank, stated: “Boubyan Bank’s performance in the first half of 2026 reflects the strength of our diversified business model and our continued focus on disciplined strategy execution. Despite the complex and evolving operating environment, we have maintained our focus on sustaining business momentum, executing our strategy prudently, and enhancing our ability to support customers while delivering sustainable long-term value to shareholders.”
Boubyan Bank continued to strengthen its balance sheet, with total assets increasing by 10% year-on-year to reach 9.6 billion Kuwaiti dinars. This reflects sustained growth momentum across its various markets, primarily driven by operational activities in Kuwait, which grew by 9% year-on-year and remained the main contributor to total asset growth. Total loans and advances also grew by 10% to reach 5.1 billion Kuwaiti dinars, supported by a 9% year-on-year increase in credit activity in Kuwait, alongside the continued expansion of other subsidiaries’ activities. On the other hand, customer deposits rose by 5% to reach 5.6 billion Kuwaiti dinars, confirming the strength and diversity of the Group’s funding base. Deposit growth in Kuwait (which increased by 4% year-on-year) was complemented by strong performance from the Group’s operations in Algeria and Turkey.
In addition to the above, asset quality improved during this period, reflecting the disciplined and prudent risk management approach adopted by the Group. The non-performing loan (NPL) ratio stood at 2.3%, compared to 3.2% in the previous year and 2.7% in the first quarter of 2026, underscoring the continuous improvement in the quality of the Group’s credit portfolio. Total coverage ratio also rose to 240%, reinforcing the Bank’s conservative strategy in provisioning. Meanwhile, the net NPL ratio, after accounting for collateral, remained at a modest level of 0.5%, further confirming the strength and resilience of the Group’s credit portfolio.
Bank Al-Bahrain continued to maintain a strong capital and liquidity position, with key regulatory ratios remaining above the minimum requirements set by the Central Bank of Kuwait in March 2026 following the launch of its monetary stimulus measures. As of June 30, 2026, the Bank’s Common Equity Tier 1 (CET1) ratio stood at 10.5%, while the Capital Adequacy Ratio (CAR) reached 15.9%, providing a robust capital buffer well above the applicable minimum requirements of 9.5% and 13.0%, respectively. The Bank’s liquidity position also remained robust, with the Liquidity Coverage Ratio (LCR) at 197% and the Net Stable Funding Ratio (NSFR) at 110% as of the second quarter of 2026, both significantly exceeding the Central Bank of Kuwait’s minimum requirement of 80%. This reflects the strength of the Bank’s funding structure and its prudent liquidity management.
Sheikh Abdullah Nasser Al-Sabah added, “Our prudent risk management approach enhances the resilience of our credit portfolio and balance sheet. The improvement in asset quality, supported by adequate provisioning and sound capital and liquidity management, demonstrates our financial strength and enables Bank Al-Bahrain to continue supporting customers and capitalizing on strategic opportunities.”
For his part, Mr. Tony Dagher, Chief Executive Officer of Bank Al-Bahrain Group, said, “Our performance during the first half of the year reflects broad-based growth across our core revenue streams, driven by higher net interest income, sustained momentum in non-interest income, and continued expansion in our key markets. The strong contribution from our operations in Kuwait, alongside growth in our international units, highlights the value of the Group’s diversified business model.”
He added, “Although profitability continues to be impacted by rising operating costs, prudent provisions, and the effects of hyperinflation accounting in Turkey, we remain focused on strengthening long-term performance drivers. This is particularly relevant as we make steady progress on our digital transformation agenda, enhance operational efficiency, and drive execution across all Group sectors. These priorities will support consistent performance, reinforce our resilience, and position Bank Al-Bahrain on a path of sustainable long-term growth.”
As part of its ongoing efforts to strengthen its capital base, Bank Al-Bahrain received approval from the Central Bank of Kuwait and the Capital Markets Authority to proceed with a capital increase through the issuance of rights shares worth 50 million Kuwaiti Dinars. This initiative represents a significant step in bolstering the Bank’s capital position, enhancing financial flexibility, and supporting future strategic opportunities, while maintaining a solid foundation for sustainable growth.
The Bank is currently completing the remaining regulatory and procedural requirements and will continue to keep shareholders and the market informed through regular regulatory disclosures.
Sheikh Abdullah Nasser Al-Sabah added: “The planned capital increase of 50 million Kuwaiti dinars through an issue of rights is a significant step toward strengthening Bank Burkan’s capital base and enhancing its capacity to support future growth opportunities. It also contributes to boosting our strategic resilience and positions the bank well to continue delivering sustainable value to its shareholders.”
During the first half of 2026, Bank Burkan announced the full resumption of withdrawals from the “Kanaz” account. All deferred withdrawals scheduled for the period from March 2025 to April 2026 were completed over five consecutive days. This draw round crowned more than 250 winners, including the fourth millionaire of the “Kanaz” account. It encompassed the monthly and semi-annual deferred draws, as well as the major annual draw, alongside the announcement of the “Kanaz” account withdrawal schedule for 2026.
The successful completion of these withdrawals represented a tangible achievement in retail banking services and reinforced the core principles underpinning the bank’s relationship with its customers. All draws were conducted following the necessary regulatory approvals and under the supervision of internal and external auditors, reaffirming the bank’s commitment to transparency and its fulfillment of promises to clients.
Under the slogan “You Are Our Motivation,” Bank Burkan honored employees of the Ministry of Interior and the General Fire Department, offering them a range of exclusive benefits and special offers in collaboration with selected companies from Kuwait Projects Company (KIPCO) and a group of prominent Kuwaiti business owners and entrepreneurs across healthcare, fitness, entertainment, retail, and lifestyle sectors. This initiative enabled frontline heroes and their families to enjoy exclusive perks, in recognition of their efforts in serving Kuwait.
Building on these efforts, Bank Burkan launched a benefits package specifically designed for employees whose spouses work in frontline roles, aiming to support and empower them to achieve a better balance between work demands and family life. The package included greater flexibility in working hours, personal assistance services to facilitate daily and family affairs, and a comprehensive wellness program focused on providing holistic support. This initiative, along with other programs targeting frontline staff, reflected the bank’s dedication to appreciating their efforts and supporting their families.
Bank Burkan continued to strengthen its strategy for human capital development through its strategic partnership with the Banking Institute, participating in the Hult Ashridge Executive Program.
The program, attended by more than 20 general managers and deputy general managers, was designed to align with the bank’s strategic objectives and leadership priorities. It aimed to enhance executive capabilities in strategic decision-making, governance, operational adaptability, innovation, and effective leadership, thereby strengthening leadership readiness to navigate an increasingly complex banking environment.
This initiative contributed to strengthening cooperation between Bank Burkan and the Banking Institute, reaffirming the bank’s commitment to preparing future leaders, supporting Kuwait’s human resource development goals, and advancing the aspirations of Kuwait Vision 2035.
Commenting on the bank’s strategy for human capital development, Dhaher stated: “Investing in our employees is the foundation of Bank Burkan’s long-term success. Through partnerships, such as our collaboration with the Banking Institute and participation in the Hult Ashridge executive leadership development program, we are equipping our leaders with the strategic skills needed to navigate changes, improve performance, and drive the bank’s future growth.”
Bank Al-Bahrain continued to reinforce its leadership in the field of sustainability through its continued inclusion in the FTSE4Good Index series, which serves as an independent testament to the bank’s commitment to responsible banking, strong governance, and the integration of environmental, social, and governance (ESG) criteria into its operations and activities. This global index evaluates companies against stringent environmental and social standards. Bank Al-Bahrain is one of only five Kuwaiti companies listed in this index, reflecting the strength of its sustainability framework and the alignment of its practices with international standards.
The bank also advanced its sustainability agenda by publishing its seventh annual Sustainability Report for 2025. As one of the first Kuwaiti banks to publish sustainability reports in both Arabic and English, Bank Al-Bahrain continues to enhance transparency and engagement with stakeholders. The report highlights the bank’s progress in embedding sustainability considerations into its strategy, operations, risk management, and decision-making processes, while showcasing achievements in measuring emissions, environmental governance, climate risk assessment, and integrating ESG criteria into credit risk practices.
Concluding his remarks, the Chairman stated, “The progress we have achieved during the first half of 2026 reflects the collective efforts of our employees and the ongoing trust placed in us by our customers and shareholders. We will sustain these successes through disciplined execution, strong governance, and responsible growth. Looking ahead, we will continue to advance our strategic priorities and expand the scope of our sustainability agenda, embedding responsible approaches across all our business lines to strengthen institutional resilience and deliver sustainable value to all stakeholders.”
